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On the Money With Maria Bartiromo

News/Business. Perspectives on market conditions and investment advice. (CC) (Stereo)

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00:30:00

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ac3

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China 12, New Orleans 6, Europe 6, U.s. 5, Niners 4, Warfarin 3, Bob 3, Louisiana 3, Alabama 3, Us 3, Chinese Oprah 2, Obama 2, Jamie Dimon 2, Jennifer 2, Washington 2, Arkansas 2, Mississippi 2, Florida 2, S&p 1, Barcheromo 1,
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  CNBC    On the Money With Maria Bartiromo    News/Business. Perspectives on market  
   conditions and investment advice. (CC) (Stereo)  

    January 27, 2013
    7:30 - 8:00pm EST  

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>> so, you're gonna do the research before you make the jump into the career. >> correct. >> good. and how hard was it for you to tell everyone what's changed and what's new about jennifer? >> i don't express myself. i kind of just keep it in. so for me to write a letter and actually say it was quite difficult. but once i actually said it, it made me feel better. >> so, on a scale of one to five, how well do you think you did? >> i think four. >> you think a four? i think you did...$5,000 worth. >> oh, thank you. >> [ laughs ] >> jennifer is definitely gonna stick with this. this is a long-term thing. sometimes it does take somebody, a third party outside of family, to really set you straight, and i think that's what gail has done for her. >> what are you gonna use the money for? >> to pay off all my debt. >> excellent. then you can have it. and have a great life. >> thanks. >> okay. >> i don't think i'm still a princess. i think i'm a young, independent lady. [ laughs ] >> ♪ i can tell, i can tell
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♪ she loves to go >> ♪ shop >> ♪ she's all out of control ♪ she can't >> ♪ stop >> ♪ designer clothes, jewels, hair ♪ ♪ she's throwing money everywhere ♪ ♪ my head is spinning ♪ head is spinning ♪ oh, oh, oh, oh ♪ she's a princess ♪ she's a princess ♪ she's a princess ♪ she's a princess ♪ modern-day princess in perhaps the most unique super bowl matchup ever, brother against brother. add to that, the pending retirement of ray lewis has set the stage for emotion and drama in new orleans at super bowl xlvii.
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>> and we are officially under way with super bowl coverage for new orleans, with the niners and the baltimore ravens. welcome in to super bowl live, delivered by papa john's, for the next three hours. i have super bowl champions to my left, darren sharper, and heath evans. the 49ers at last check are in the air. they are about 20 minutes away from landing in new orleans. when they do land -- >> where does that put them, over arkansas? >> roughly arkansas. we should get a flight map up there. >> we're not known for
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geography. when they get to louisiana, they'll be landing in new orleans. we'll take you the niners press conferences as they get the hotel. we'll show you the niners walking down the jetway down to the tarmac. we'll bring you everything from the 49ers' arrival as he head on to new orleans. they beat the two seed, they beat the one seed to get to new orleans. here they are, the san francisco 49ers, looking for their sixth super bowl. and they packed up early today, in santa clara, california, headed to the airport to san jose to get on that plane and to fly down to new orleans for the tenth super bowl that that city will host. tied with miami now for the most all-time. there they are, guys, getting up there on the jetway. >> nice. >> and flying away. you know who's already there, albert greer, who covered the 49ers all week. he has beaten them to louis
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armstrong airport. it is beautiful, clear, a nice night for flying, i would assume. when they get there, what are the niners going to do? >> well, andrew, like you said, the niners will arrive here at louis armstrong international airport. >> you hear less about europe's going to blow up tomorrow. >> so you're not seeing over enthusia enthusiasm, but it's certainly better than a year ago. >> yeah u it's definitely commerce. their theme here is resilient dynamoism. i actually think growth will be moderate with not necessarily a lot of volatility around that. that it might be better, it might be worse. >> see, i'm hearing a lot of positives about the u.s. economy, if washington can get its act together, but europe is
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still a big issue. what do you think about europe right now? have we made progress? and what's to come? >> well, i think there's some big, long term things they need to do in europe over the next 5-7 years. they've done some structural forms. they've raised their pension ages. they've done labor market reforms. nothing has happened in the united states. absolutely nothing. and i think their reasons for optimism from the shale, which, by the way, that's an area where people are excited to talk about that. and, you know, there's some optimism coming from the easy money, i suppose, still. but i think in the united states, you know, if we get to the consensus, which seems to be 3% at the end of the year, i think that would be good. >> let me ask you about the economy. relative to what ee's going on washington. we voted that the house extended to see a debt ceili ining for a months. how does this play out? >> forever. i mean, that's the short answer. forever. they don't agree.
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so we're seeing an overlay of this, you know, one side the republicans, the other side the democrats. and i must say, post-election, president obama has become more election. it's wider. and they don't agree about military spending. they don't agree about what taxation should be, on and on and on. gun control. they don't agree. and on the other hand, you know, we have this sort of slow economy that makes it more difficult to cut a deal. and i should add to that a constitutional crisis, in a way, because this whole debt ceiling has been a weapon that the house of representatives has used to gain power. it's not just the republicans versus the democrats. it's the house versus the president. >> meanwhile, these markets are on fire. another good week for the market. the s&p 500 hitting a new five-year high. what is driving stocks? and do you think it's sustainable for the year?
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some of the risk has been pulled out of the of the market. so the most recent is three months. some of the ris ks. and maybe just that the election isn't determined. maybe some are happy. some are, some aren't. but it's solved. markets don't like uncertainty. so even though it wasn't very likely the european union would fall apart, even though it wasn't very likely the u.s. would fall on its debt, i think that lifted markts a lot. >> meanwhile, new appointments in the obama administration. timmy geithner, the last day was on friday. i want to ask you about his successor. he's certainly served during a tumultuous time. >> if i'm going to give him one grade, i'm going to give him an "a." are there things he could have done better? >> yes. do i want to relive the financial crisis and try out my theory? no. i thil nk he has to give credit
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the economy is moving back on its feet. we're still huge on employment, we still don't have a clear path to fast growth. it's very much unfinished business. >> jack lew, what's your tame? >> i don't know him, maria. it's hard for me to have any personal judgment. i have to say i was surprised by it. as a complete outsider, i don't know. there's a little bit that president obama doesn't know what to do and not so much to give him new direction. >> pleasure having you on the program. >> thank you so much. up next, we're "on the money." how would you feel about taking an $11 million pay cut. >> i think it's appropriate. the board had a very tough decision to make. >> my conversation with jamie dimon, about his housing market and the u.s. economy. and is the world big enough
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for two oprahs? i'm talking with china's oprah. take a look at how the stock market ended the week. ♪ [ male announcer ] to hold a patent that has changed the modern world... would define you as an innovator. to hold more than one patent of this caliber... would define you as a true leader. ♪ to hold over 80,000... well, that would make you... the creators of the 2013 mercedes-benz e-class... quite possibly the most advanced luxury sedan ever. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.
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to the best vacation spot on earth. (all) the gulf! it doesn't matter which of our great states folks visit. mississippi, alabama, louisiana or florida, they're gonna love it. shaul, your alabama hospitality is incredible. thanks, karen. love your mississippi outdoors. i vote for your florida beaches, dawn. bill, this louisiana seafood is delicious. we're having such a great year on the gulf, we've decided to put aside our rivalry. now is the perfect time to visit anyone of our states. the beaches and waters couldn't be more beautiful. take a boat ride, go fishing or just lay in the sun. we've got coastline to explore and wildlife to photograph. and there's world class dining with our world famous seafood. so for a great vacation this year, come to the gulf.
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its all fabulous but i give florida the edge. right after mississippi. you mean alabama. say louisiana or there's no dessert. this invitation is brought to you by bp and all of us who call the gulf home. make no mistake about it, jamie dimon says what he means and means what he says. i spoke with the chairman of j.p. morgan chase. >> news last week that you took a pay cut as a result of the lond london whale trading loss. >> first, i didn't take it. i was given one. >> you were given a pay cut.
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>> which i think is appropriate. the board had a very tough decision to make. we had a record year and a bad. we had one terrible mistake in the year. look, we've fixed the problem from the financial risk for the most part. we've disclosed both a company report and a completely independent board report, independent outside advisors, et cetera. the regulars will u of course, have their views to do. so it will be more on going things from that. but we've mostly got the problem behind. we've cleaned up c.i.o. we've changed procedures to make sure we manage the company properly. >> so what kind of changes might we expect going forward? restructuring how the govern nans is done? >> last year, i think $1.8 trillion of capital or credit for consumers or businesses. we had a problem. we've fully acknowledged it. it's the same bank that went through '07, '08, '09, 2010,
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2011. for the most part, did fine. whenever a company makes a mistake, you should analyze it and try to be better for it. so most of the mistake was the. c.i.o. >> let me ask you about the u.s. we saw that mortgage originations were huge for you in the quarter. you've been talking a lot about the last couple of years of housing showing true improvement and having bottomed. where are you in that? what are you expecting in the next couple years? >> housing is totally bottomed. you saw today that homes for sales come so far down that they're in short supply. they're all leading indicators. it's cheaper to buy than to rent. all-time affordability. prices are low and mortgage rates are 3.5%. it's not going to be an absence for our economy. i really think at this point, the economy will drive housing. >> what are you expecting elsewhere in terms of regulatory environment. we're all wondering how
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dodd-frank plays out, we're all wondering how the vocal rule plays out. what if it materializes and forces a separation from proprietary trading? >> that's not the vocal rule. >> proply terietary trading -- >> no one is doing proprietary trading. i always remind the public we have the best capital mortgage in the whole world. i'm not opposed to the intent of the volcker rule. we have the best markets in the world. so market-making, we serve 20,000 customers. we give them great prices. they come to us because we give them a good price. just like walmart gives you a good price. and we do a lot of it, you know. that's a good thing. it keeps the cost of issuance cheap for retirees, pensions. >> in terms of the federal
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reserve, how do you offset this difficulty in terms of making money in such a low-rate environment. >> i keep on hearing that the banks are a benefit and subsidized. you're more right. it hurts us more than helps us. so we've told the world it squeezes our net income by about 500 million dlarsz a year. there will be a reverse side to that. we're investing in the business as if it were a normal environment. it's like if you were running a pizza shop and the cost of mozzarella was higher, you wouldn't stop selling pizzas. you know, we try to be long term there and think it through. >> what policies will create jobs? that's what we're all trying to figure out. how do you create jobs. >> if we had done the grand bargain, it doesn't have to be exactly the one that anyone wants it. that showed that america can make decisions. it set a more effective tax system. it reduced taxes going forward. and i think we could have had a
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booming environment. i may be wrong. that's my own personal belief. if we had a grand bargain, america will take off. i think it's very important for america to get strong. the rest of the world needs us to. europe still has its issues. i think it's important that america kind of took the lead here. >> what does your gut tell you about all of this money moving into stocks recently? do you think this is sustainable? >> yeah, if the economy grows, it's sustainable. you know, it's not just america, it's european, japanese and chinese companies. but you're still buying them at fairly good prices. and your alternatives aren't really that good. so, yes, i'm comfortable owning stocks right now. >> my thanks to jamie di plrksz on. the state of business, the state of investors and the state of europe all part of the conversation here this week from citi ceo to a billionaire
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philanthropist. here's what they had to say. >> our strategy is really focused around a few of the big secular things that are going on in the world. globalization, urbanization, dijtization. if you think about globalization and you look at what's going on in the economy, most of the growth is coming from the developing countries. >> the market, as you pointed, they were comforted. investors had something like a 15% increase in their 401 ks last year. the net wealth investors to participate and there's obviously a rotation from bonds to equities. >> there's a general sense of almost euphoria that the crisis is over. i think that is somewhat premature because the fundamental, internal
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inconsistencies in the system have not been addressed. >> up next, we are on the money and so is yang lang. the woman many people call chinese oprah. her reach, her media empire and how her generation is reinventing china. and you can find us on facebook/maria barcheromo.
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my next guest is referred to as the chinese oprah. yang lan is the host of several
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national television shows in china such as "yang lan" one-on-one and her village. lan, it's nice to have you on the program. >> maria, thank you for having me. >> you're welcome. tell me about your experience? everyone's trying to figure out what's going on in the country. how has your week been? >> well, it has been terrific. i'm meeting so many people and updated by information on so many different fronts. and, of course, china is a hot topic. actually, this is, i think, the most important and critical period of time. in chinese history. we do look forward to our new generation of state leaders can move this country forward to be more open, democratic and giving people more choices and opportunities. but, now, you do read mixed messages over time. so sometimes i'm confused myself. >> do you think that we will see a more-open china? they were telling me about wabo,
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which is the equivalent of twitter. >> that's a social media. >> yes, in china. is that making a difference? >> definitely, i think technology is providing the largest public arena for china's people to give them a voice. so i think, you know, when people are talking about where china will go, i think there's only one sensible orientation, which is to be more open and democratic. >> now you have how many followers on weibo? >> id have 35 million. i tried to make some good changes. >> you made a couple comments about social media allowing to let off steam? >> definitely. definitely. also, they are contributing to the social and economic progress of the country by corruption and by debating on public policies from traffic to housing to education to medical services. and, also, it's great fun and entertainmented.
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you see people very creative and especially young people. i always enjoy reading their comments and things like that. >> that is fantastic. you're a self-made entrepreneur. so impressive. several television shows, a growing media empire, hence the oprah comparison. >> it's a compliment. i have a lot of admiration for her for what she has done to empower women. i have a lot of admiration. >> so tell us about your show in china. who is your audience? >> i have two major shows. "one-on-one" is a more indent interview show with movers and shakers around the world. it's been on air 13 years and i've interviewed more than 600 leaders around the world including many u.s. presidents and secretary of states. another show, "her village" is more like oprah's show plus "the view" because i have two other younger women who are providing different perspectives onto
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certain issues that women care for. and we have celebrities, as well. as gras routes women telling their stories. >> are there professional opportunities? are they growing for women in china? >> oh, absolutely. in china, about 48% of the work force are women. more than half of college attenders and graduate school students are women. about 30% of business school students are women. and 30% of entrepreneurs are women. so chinese women are becoming a very critical voice in the society. >> and what's your take on china today in terms of whether it's slowing down, this transition from an export-led economy to a consumer economy? is that on track? >> well, i think people have different ideas and expectations about this pace of transition. but there's no issue that everyone believed that we have
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to go through this structural change of economic prublgtivety. to be more environmentally friendly, to be more sustainable, to be more value-added is definitely the way to go. and i think to make people spend more and save less is to provide them with a more complete social and in medical welfare so that people feel safe to spend the money there. >> sure. it's still a big saver of community. >> yang spsz lan, good to have you on the program. >> thank you. >> up next, a look at the news this week that will have an impact on the money. and then the art of coming together to solve the world's problems. the scenes of davos offered tranquility on the mountain. [ male announcer ] this is bob,
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a regular guy with an irregular heartbeat. the usual, bob? not today. [ male announcer ] bob has afib: atrial fibrillation not caused by a heart valve problem, a condition that puts him at greater risk for a stroke. [ gps ] turn left. i don't think so. [ male announcer ] for years, bob took warfarin, and made a monthly trip to the clinic to get his blood tested. but not anymore. bob's doctor recommended a different option: once-a-day xarelto®. xarelto® is the first and only once-a-day prescription blood thinner for patients with afib not caused by a heart valve problem, that doesn't require routine blood monitoring. like warfarin, xarelto® is proven effective to reduce the risk of an afib-related stroke. there is limited data on how these drugs compare when warfarin is well managed. no routine blood monitoring means bob can spend his extra time however he likes. new zealand! xarelto® is just one pill a day, taken with the evening meal. and with no dietary restrictions,
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and, now, a look at the stories coming up in the week ahead that may impact your money and impact the markets. a busy week ahead for economics and earnings news to tell you about. we'll get earnings news from dow's components boeing, chevron and amazon. tuesday, the home index is out. on wednesday, the federal reserve will wrap up a two-day meeting with an announcement on policy and interest rates.
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and we'll also get the first reading on gross domestic product for last quarter of the year, that's typically a market mover, as is on friday, the all-important jobs report sure to move the markets. well, it has been quite a week here in davos, we're solving the world's problems is a state of the art. abstract artist daniel ebara created a series of collages for the congress center main hall. it's called the tranquil labyrinth. a colorful theme for an event that stresses cooperation and innovation. that's the show for today. thank you so much for joining me. i'll see you back in new york. next week, the business broadway. seeing green in the bright lights of broadway? each week, keep it right here where we are "on the money." have a great weekend, everybody, i'll see you again next weekend.